The city of Port Orchard documented how its formula for calculating water rates attempts to charge different classes of users for their proportional share of consumption.
The city of Port Orchard documented how its formula for calculating water rates attempts to charge different classes of users for their proportional share of consumption.
The city of Port Orchard documented how its formula for calculating water rates attempts to charge different classes of users for their proportional share of consumption.
MEMORANDUM
August 8, 2011
To: Mark Dorsey, PE
‘The Honorable Lary Coppola, Mayor
‘The Honorable Rob Putaansun
‘The Honorable John Clausen
‘The Honorable Fred Olin
From: Treasurer Allan Martin
In order to provide customers with a reliable and fairly priced supply of safe drinking water, our
system’s rate structure must produce enough money to operate in a financially sound manner.
Some of the factors facing the City include:
Geraldine Harmon testified to council on July 26, 2011 requesting the city consider a per gallon
charge. Gerry provided an excel spreadsheet of her water rate calculations and asked that the
City look over her calculations and also asked for information on the number of water accounts.
Ms. Harmon’s base for her gallon calculations’ is a unit price for a single unit of measure of
water sold in more or less than a single unit. The City prices on a base price plus a cost per
1,000 gallon of water. The point she seeks to make is that Class 1 single family residence
Maintenance, repair, and replacement costs that are increasing with the age of the
‘water system and its components
Increased cost for water treatment
Inflation
Past revenues not covering the true cost of water delivery
subsidize in a form of financial assistance commercial water users.
‘The chart below identifies consumers by Class, number of Accounts, Revenue, and Gallons
Consumed.
210 iS Revewe